Breakfast trends: Know the cost (or savings!) that come with quality

For hoteliers, serving breakfast for a consistent cost throughout the year can be difficult. Breakfast staples are comprised of products like eggs and bacon that rise in cost during summer. Breakfast foods are also especially perishable, limiting the options hotels have to stock up on these goods.

The key: Know your budget, know your guests’ preferences and plan ahead to account for seasonal pricing fluctuations.

“The cost varies so much, it really does,” said Jim Milkovich, director of purchasing for Hyatt Hotels Corp.. “Last year we moved our services to K-Treat shell eggs and there is a definite cost attached to that. But we feel our customers appreciate the higher-end goods, which is why we make sure to offer them.”

Milkovich says breakfast is a difficult meal period to serve a quality product due to the large variance in the categories of food and costs that are paid for quality. “Commodity bacon can be bought for $2.50 a pound, something you might find in your home, but a high-quality bacon product can go for $4 to $6 a pound,” he said. “It is very easy to triple your costs for just one ingredient. We serve large cage-free shell eggs for double the cost of commodity eggs, and it all adds up very quickly.”

Rich Warren, VP of business development at Buy Efficient, says products that seem to be identical can offer a large cost difference. Buy Efficient works with hotels to foster better buying practices for meals, advising properties on what products to buy based on their customer base and overall budget. For Warren, the expensive item isn’t always the better item.

Milkovich commented that opportunities have come up to lower costs at Hyatt, but in the end they decided not to. “I get a lot of vendors calling me about cost-effective products, and we have to do our due diligence and take a look at what is out there,” he said. “At the end of the day, though, you pay for quality. I know how tough it is for manufacturers to provide the quality we want at a low cost, so when I hear about it I’m always a little skeptical.”

However, in many instances, healthier options don't always mean higher costs.

Milkovich said Hyatt is looking to incorporate more cage-free eggs into its breakfast programs, as well as cold-pressed butter rather than a processed margarine blend of. “In addition, our croissants are all butter and our jelly has no high-fructose corn syrup,” he said.

According to Ron Pohl, SVP of brand management and member services at Best Western, healthier items becoming more popular has been a boon for the company, as in some instances they are cheaper and easier to supply.

“We are seeing a trend where more people are enjoying items they can put fruit on,” Pohl said. “Oatmeal, cereal and yogurt are low-cost compared to breakfast Danishes and heavy breads. Even waffles and pancakes, which are popular with the leisure traveler, still come at a low cost.”

Pohl also maintains that breakfast sandwiches are a good trend for hotels to adopt. “Wraps and other breakfast sandwiches come at a low cost, and they are very easy to control in number,” he said. “Additionally, we like to offer a local flair for our hotels at breakfast. In Texas, we have hotels that drove down advertising costs and invested in breakfast options unique to their location, and it ended up attracting more customers than advertising ever did. Customers like getting grits in Texas and something else in New York, and it is a good opportunity to show diversity and a change of pace.”